Nigeria has waited for quite a long time to gain back its investors in the oil industry. Now the time has come that if Nigeria wants to reform its oil industry, then proper government legislation regarding the issue must come into place. The industry should be more open and accessible to international players to earn them back as investors.
Nigeria, Africa’s most significant oil-producing industry, has an estimated 37 billion barrels of oil. But it has been criticized a lot by the foreign countries as they constantly failed to pass the PIB (Petroleum Industry Bill). This had caused regular uncertainty to the international companies, thus Nigeria losing its investors. But Nigeria has realized the loophole, and finally, the Nigerian Senate is expected to pass the bill shortly, which was initially presented in 2008. The legislation will alter the energy assets operated and funded following pressure from Royal Dutch Shell Plc’s oil-drilling unit.
This much delay over the PIB by Nigeria is surprising as 80% of the total earning is generated by the oil only. The industry is churning out around 2 BPD of crude oil and extending it to 4 BPD of crude oil. This reform will make Nigeria’s Oil and Gas industry a private limited liability company. Most of the sectors will be deregulated, and taxes will be reduced, and attract more foreign investors.
Several oil fields like Forcados, Bonny, Escravos, Brass River, etc., have been producing oil at a meager rate due to technical and maintenance issues. Moreover, the leakages in the pipelines are also one of the significant losses in crude oils. Thus if Nigeria doesn’t want to lose its only power in the oil industry, they should immediately take concern and pass the PIB before a further do. Government should also pay attention to the onshore plants’ maintenance as the aging might be a bigger loss for the industry and the economy.